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RedBox Gets Ready for Online Delivery

RedBox Gets Ready for Online Delivery. November 3, 2010. Michael Luu Brianna Olson Megan Walker. Moving Digital. Implementing a new “digital strategy” for 2011 Similar to Netflix and Blockbuster Allow for added convenience Currently offers around 600 titles 28,900 existing kiosks.

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RedBox Gets Ready for Online Delivery

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  1. RedBox Gets Ready for Online Delivery November 3, 2010 Michael Luu Brianna Olson Megan Walker

  2. Moving Digital • Implementing a new “digital strategy” for 2011 • Similar to Netflix and Blockbuster • Allow for added convenience • Currently offers around 600 titles • 28,900 existing kiosks

  3. Business Issues • Retail Pricing • DVDs currently rent for $1 per night due to no contract fees • Future charges of $4-$6 for streaming digital new releases • Convenience of streaming digital may make up for the price change in consumer’s minds

  4. Social and Behavioral Issues • Watching DVDs is a “shared” experience • PC delivery is not so good for such viewing • Even when viewing is personal, consumers may be drawn toward the higher quality a TV can offer

  5. Ecosystem Issues • Consumers must purchase the necessary equipment for streaming digital • X-box • Playstation • Wii • This can be costly • With a limited library purchasing such equipment might not be cost effective

  6. Pros and Cons Pros Cons Cost Set Up Rentals Limited DVD titles Competition Netflix Blockbuster • Convenience • Expand RedBox presence in the industry

  7. Sources Kim, Gary. (2010, November 1). Redbox Gets Ready for Online Delivery. Retrieved November 1, 2010, from http://iptv.tmcnet.com/topics/iptv/articles/112970-redbox-gets-ready-online-delivery.htm

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